is like any other private vehicle transaction with a title transfer and a sale price—but in this case, the price is $0 and the recipient can avoid paying taxes.

To gift a new or used car in Ohio, the vehicle must be free of all liens.
To complete the title transfer, you’ll need to provide an odometer disclosure, and list the sale price as $0.
The gifted vehicle’s new owner may not have to pay sales taxes, but they will be required to purchase
car insurance
and complete
vehicle registration
.

How to gift a car in Ohio

To gift a car in Ohio, you’ll need to buy or own the car outright before going to the Bureau of Motor Vehicles (BMV) to perform the title transfer. If you have to get a

car loan

to purchase the vehicle you want to gift, you should bring the recipient to the dealership to involve them in the shopping and financing process.

You won’t be able to transfer the certificate of title to the recipient if the vehicle has a

lien

on it.

Key Takeaway Before you can gift a car, you need to fully own the vehicle. If you’re buying a car to gift, you should involve the recipient in the financing process.

1. Negotiate the terms of the gift with your recipient

Make sure to discuss the following costs of car ownership with your recipient:

Cost	Ohio average
Title transfer	$15
Registration fee	$31
Insurance	$1,548 ( liability coverage only); $1,628 ( full coverage ) per year
Basic car maintenance	$354 per year
Fuel	$1,347 per year

Prior to transferring the title, it’s important to clearly outline who will be responsible for each expense.

2. Create a bill of sale

You still have to write a bill of sale to document the new ownership of the gifted vehicle.

Fill out the Ohio BMV’s

Bill of Sale Template

The bill of sale must include the make, model, year, and vehicle identification number (VIN) of the gifted car.

Include the full names, addresses, and signatures of both yourself and the new owner.

Fill out the date, the car’s odometer reading, and the license plate number.

Write $0 in the sale price space to indicate the vehicle is a gift.

MORE: How to write a bill of sale

2. Transfer the vehicle title

Transferring the vehicle title transfers legal ownership of the vehicle to the gift recipient. Make sure to complete the title transfer within 30 days of gifting.

To transfer the car title, visit

your local BMV office

with the recipient, and bring the following:

The current vehicle title assigned to the gifter with $0 listed as the sale price and the transfer of ownership information filled out

Application or Certificate of Title to a Motor Vehicle

(Form BMV 3774)

Odometer Disclosure Statement

(usually found on the back of current title)

Payment for title transfer fees

Special circumstances in Ohio title transfers

If the vehicle is coming from out of state, you’ll have to complete a VIN inspection and an out-of-state inspection form at the BMV to complete the transfer.

If you live in one of the following counties, the vehicle will need to pass emissions testing:

Cuyahoga

Geauga

Lake

Lorain

Medina

Portage

Summit

Gifted vehicles in these counties that are not exempt will have to pass emissions testing before being registered by the recipient. Check with your local BMV to see if your gifted vehicle is exempt from testing.

4. Purchase Ohio car insurance

The gifted vehicle will have to meet

Ohio’s minimum requirements

for liability insurance. Here’s what the state requires:

$25,000

bodily injury liability

per person

$50,000 bodily injury liability per accident

$25,000

property damage liability

per accident

MORE:

11 car insurance hacks to save you money

“Since I’m under 25, I thought paying a lot for insurance was normal.
Jerry
made it easy to find affordable insurance. It was even easy to switch insurance agencies. I went to bed and woke up with new insurance.” —Steven C.